Correlation Between Catalyst Exceed and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Elfun Diversified at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Catalyst Exceed and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Exceed Defined and Elfun Diversified Fund, you can compare the effects of market volatilities on Catalyst Exceed and Elfun Diversified and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Catalyst Exceed with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Elfun Diversified.
Diversification Opportunities for Catalyst Exceed and Elfun Diversified
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Elfun is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Catalyst Exceed is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Catalyst Exceed Defined are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Elfun Diversified go up and down completely randomly.
Pair Corralation between Catalyst Exceed and Elfun Diversified
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 2.09 times more return on investment than Elfun Diversified. However, Catalyst Exceed is 2.09 times more volatile than Elfun Diversified Fund. It trades about 0.34 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.38 per unit of risk. If you would invest 1,085 in Catalyst Exceed Defined on April 23, 2025 and sell it today you would earn a total of 198.00 from holding Catalyst Exceed Defined or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Exceed Defined vs. Elfun Diversified Fund
Performance |
| Timeline |
| Catalyst Exceed Defined |
| Elfun Diversified |
Catalyst Exceed and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Exceed and Elfun Diversified
The main advantage of trading using opposite Catalyst Exceed and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, Elfun Diversified can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Elfun Diversified will offset losses from the drop in Elfun Diversified's long position.| Catalyst Exceed vs. Catalystsmh High Income | Catalyst Exceed vs. Catalystsmh High Income | Catalyst Exceed vs. Catalystsmh High Income | Catalyst Exceed vs. Catalyst Mlp Infrastructure |
| Elfun Diversified vs. Pnc Balanced Allocation | Elfun Diversified vs. Profunds Large Cap Growth | Elfun Diversified vs. T Rowe Price | Elfun Diversified vs. Franklin Moderate Allocation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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